Correlation Between Blackrock Enhanced and MFS Special
Can any of the company-specific risk be diversified away by investing in both Blackrock Enhanced and MFS Special at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Blackrock Enhanced and MFS Special into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackrock Enhanced Government and MFS Special Value, you can compare the effects of market volatilities on Blackrock Enhanced and MFS Special and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Blackrock Enhanced with a short position of MFS Special. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackrock Enhanced and MFS Special.
Diversification Opportunities for Blackrock Enhanced and MFS Special
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Blackrock and MFS is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Blackrock Enhanced Government and MFS Special Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MFS Special Value and Blackrock Enhanced is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Blackrock Enhanced Government are associated (or correlated) with MFS Special. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MFS Special Value has no effect on the direction of Blackrock Enhanced i.e., Blackrock Enhanced and MFS Special go up and down completely randomly.
Pair Corralation between Blackrock Enhanced and MFS Special
If you would invest 907.00 in Blackrock Enhanced Government on August 31, 2024 and sell it today you would earn a total of 142.00 from holding Blackrock Enhanced Government or generate 15.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 0.79% |
| Values | Daily Returns |
Blackrock Enhanced Government vs. MFS Special Value
Performance |
| Timeline |
| Blackrock Enhanced |
| MFS Special Value |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Blackrock Enhanced and MFS Special Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackrock Enhanced and MFS Special
The main advantage of trading using opposite Blackrock Enhanced and MFS Special positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackrock Enhanced position performs unexpectedly, MFS Special can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in MFS Special will offset losses from the drop in MFS Special's long position.The idea behind Blackrock Enhanced Government and MFS Special Value pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Commodity Directory module to find actively traded commodities issued by global exchanges.
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